eReinsure's Best-Devereux: Data quality remains a “significant issue”

Even though strides have been made toward creating data-driven reinsurance businesses, overall market progress remains slow, according to eReinsure founder and CEO Igor Best-Devereux.

Speaking to The Insurer TV at the Rendez-Vous de Septembre in Monte Carlo, Best-Devereux said that despite a wider understanding that data and data quality are foundational to the health of a business, there is still “a significant issue with data quality” in the market.

“ Systems like ours, where you capture the data in a structured format earlier on in the process, can certainly help. But it's also a market still highly reliant on email, and email is a terrible way to structure data or put together a package of information because it's inherently unstructured and also pretty insecure these days,” he said.

Therefore, a major leap is needed in terms of moving the market to a better structured data environment, Best-Devereux said, adding that this will be “absolutely critical” as businesses start to consider the opportunities presented by AI.

He said: “You can't just rely on the fact that AI is somehow going to mine the internet for the data you need. It doesn't work like that. You need to get your data ready for AI. A lot of our customers are spending a huge amount of time and effort to try and do that.”

Keep the use of AI simple

Best-Devereux added that while he believes AI is going to be a part of the future for the reinsurance industry, it may take longer than expected.

Therefore, Best-Devereux recommended that when looking at how AI could be used in business operations, companies should try to keep it simple and straightforward.

“The idea of AI black boxes that are very powerful, complex models, but you have no idea really what's happening inside, isn’t very helpful and certainly not at the moment. There are some really simple, straightforward uses,” he said.

He added that these straightforward applications include data validation and comparisons.

“We focus our efforts on the more practical and attainable side, rather than just on pipe dreams.”

Talent shortages pose a challenge to digital revolution

Best-Devereux said the biggest challenge in realising the market’s tech-enabled vision is attracting talent with the necessary skills, particularly as the industry moves towards a much more data and technology-intensive future.

This is particularly difficult as other industries are doing a better job at attracting talent, he noted.

“That's a hard thing to do because we're competing with other parts of the economy. Why does somebody with real talent want to go and work for TikTok versus in reinsurance? It's partly to do with the perception of insurance and reinsurance as a business,” he said.

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